The Tata Group-run Indian Hotels Company on Monday announced a ₹2,500 crore investment to develop a new 330-room property in Mumbai.

The new property is coming up on a two-acre land parcel that once housed the Sea Rock Hotel, which was one of the sites bombed in the 1993 serial blasts. IHCL bought the property for ₹680 crore and demolished the structure completely.

The Bandra property — named Taj Bandstand project — had its groundbreaking ceremony on Monday in the presence of Maharashtra’s chief minister Devendra Fadnavis and Tata Sons chairman N. Chandrasekaran.

Taj Bandstand will house 330 rooms and 85 apartments with multiple dining options and convention spaces. The project will include the development and maintenance of the surrounding area with landscaped gardens, sporting and recreation activities as well as entertainment options.

With the addition of this hotel, IHCL will have 17 hotels in India’s commercial capital, which includes five under development. The project is expected to take four years to complete, IHCL’s managing director and chief executive Puneet Chhatwal said.

He said the ₹2,500 crore investment includes the cost of land and added that all necessary permissions for the development have been obtained.

“We have received key pre-construction approvals including IOD (a preliminary nod before commencement of a project) and provisional Fire NOC. Upon receiving all approvals, IHCL expects to commence construction in 2025 and complete the project over the next four years,’’ he said.

This project will be come up opposite IHCL’s existing property — Taj Lands End. A road passes between the two plots to the Bandra Fort.

“IHCL opened its first hotel — The Taj Mahal Palace, in Bombay in 1903 and has for over a century woven itself into the cultural fabric of the city. Taj Bandstand, a testament to this legacy, will be the torchbearer of the iconic brand Taj for the next century.

“Envisioned to be a defining edifice of Mumbai’s skyline, this landmark development is a tribute to Mumbai’s spirit, its people, and its growing global prominence,’’ Chhatwal said.

The Sea Rock Hotel was once known for its dazzling parties and its rooftop restaurant called the Palace of the West Empress, the only revolving one in Mumbai.